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Mexico Industry News

NAFTA heads of state to discuss cross border business travel at Toluca summit

On Wednesday, February 19, 2014, the three heads of state of the NAFTA signatory countries, Canadian Prime Minister, Stephen Harper, and U.S. and Mexican presidents Barack Obama and Enrique Peña Nieto, will meet in the capital of the South Central Mexican State of Toluca.

The group has opted to backburner contentious outstanding social issues, and to concentrate on initiatives that serve the purpose of creating greater economic integration between the three nations. One of the topics that will be addressed is the relaxation of the cross border business travel controls that are in place between the U.S. and Mexico.

Today, each of the NAFTA bloc countries runs and administers its own “trusted traveler” program. The heads of state and other NAFTA member trade and economic officials are in agreement that the harmonization of disparate programs for the back and forth movement of the cross border business traveler will result in greater commercial integration, although doing so would require increased information sharing between Mexico, the U.S. and Canada. A future unified “trusted travler” program would take the place of those that are already in place such as Nexus, Global Entry and Sentry.

In addition to facilitating cross border business travel, the three leaders will also pursue additional issues related to greater trade and economic integration in the NAFTA region such as the harmonization of the trade information utilized by companies that are engaged in import and export activities that are conducted among the three nations. Although there is significant political opposition to the Trans Pacific Partnership (TPP) in the United States, the pending trade agreement is likely to be a topic of conversation among Harper, Obama and Peña Nieto, as well. The TPP seeks to manage trade, and indirectly the economies, of the Asia-Pacific region.

As of August of 2013, talks have been underway to expand the existing TPP beyond its four original members: Brunei, Chile, New Zealand, and Singapore. If ratified in an expanded version, the agreement will encompass the participating economies of Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.

“The Tecma Group of Companies' services allow me to concentrate on making and selling wood pallets. I have Tecma handle all administrative functions, Mexican Customs, human resources, all permitting, as well as the legal aspects of manufacturing in Mexico. It’s a very good, complementary relationship. They provide me with a project manager, which means I don’t have to deal with a lot of individuals. I deal with one individual, who then deals with experts in all relevant disciplines on my behalf.”

“When we purchased the Dashmat product line, which is the product that we are manufacturing in Ciudad Juarez, we were able to establish a Mexico manufacturing plant with Tecma very quickly. They got us up and running very smoothly under their Mexico Shelter Manufacturing Partnership (MSMP). We like Tecma because it is a stable company that has been around for many years, and looks to be around for many more. Tecma appears to care about our Mexico business' success is very responsive to our needs.”

“Since we started, we have been able to maintain a competitive advantage over many of our competitors that have moved their manufacturing to China by reducing lead times to 4 weeks less than most of our competitors. This has given us the ability to compete on pricing against many of our competitors that have gone to China. We found that in our Juarez staff in Mexico we found a highly-trained workforce with strong background, and the capability to do mannequin manufacturing in Mexico.”

“More than a decade ago, Portage Electric Products Incorporated was faced with the reality that we were going to have to consider manufacturing in another country in order to maintain our competitiveness in the global marketplace. We chose Mexico, as we could be here literally within hours, should the need arise. We chose the Tecma Mexico Shelter Manufacturing Partnership (MSMP) because it provided virtually everything we needed to begin with and support an ongoing Mexico manufacturing operation.”

This quarterly publication will be populated with content that is useful and relevant to readers that are contemplating Mexico investments, have operations already within the Republic, as well as to other individuals that have an interest in Mexico and its manufacturing sector.